The SPY(SPDR… S&P500 ETF)… is Trending UPWARD – PLUS 11.22 for the week ending 09/01/2023.
Hopefully I can get this published to you- Inspite of the "network errors"!
The Market Algo Newsletter: 09/01/2023
The SPY(SPDR… S&P500 ETF)… is Trending UPWARD – PLUS 11.22 for the week ending 09/01/2023.
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“Gold is the money of kings. Silver is the money of gentlemen. Barter is the money of peasants – but Debt is the money of slaves.”- Norm Franz
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TEST- I am having network issues- Sending yet another newsletter posting- in hopes I can get it to publish! – Patrick--- I MAY have to significantly shorten it to see if THAT will get it published!
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Abbreviated info- Hope - I can get it published in this abbreviated form- to temporarily resolve the “network errors I am having”- Substack support is less than helpful- unfortunately-
Possibly my length of the newsletter is too long. May have to drastically reduce the length moving forward. Sad to say - but maybe a blessing in disguise? People don’t have much time to read this stuff!
Lets cut to the chase:
11.22 for the past week ending on 09/08/2023.
In our opinion – not investment advice – The Bulls – yet again - WILL rule for the trading week ending 09/08/2023!
Be Aware – Be Awesome –
To not miss out on the rapid changes in market trends – subscribe to our weekly MAG Newsletter!
For the upcoming trading week, ending on 09/08/2023, our proprietary algo forecasts the following potential trend for each of the following metrics – either Bullish or Bearish:
VIX index: Bullish!
VVIX index: Bullish!
SPY index: Bullish! - swing traders and day traders –
Take Note of This!
West Texas Intermediate – Crude Oil: Bullish!
QQQ: Bullish!
Copper: Bullish!
And of course, the VIX – SPY Correlation Variance” – Right on cue – Bullish! –
Conservative traders & “Investors” – Take Note of This!
So what?
So for the next week – the ongoing Bear market will yet again – witness – yet AGAIN – another sucker rally!
Some would call this a “Bull Trap”!
Be nimble in trading this market- You do NOT want to be a bag holder when this rally ends!
Don’t be a bag holder.
Our conclusion for the week ahead is that – our algo indicates that the Bulls – at least for the week ahead – are yet again in control.
The Takeaway:
Typically – in a Presidential year election cycle – some analysts say that the stock market “MUST” – “look good” to ensure the sheeple have the illusion that “it’s all good”. So – expect the periodic “rally” to manifest from time to time.
Our SPY-VIX Correlation Variation metric - – confirms - at least from a purely technical point of view (notwithstanding “Fed manipulation” monkey business) - this coming week’s bullishness!
In our opinion massive global bank runs are still ongoing- notwithstanding the massive printing of fiat money to “stem the run on banks”.
Some analysts say that QE, or Qualitative Easing continues - at least for the banks!
This is – of course - NOT investment advice – but fasten your seat belts - a bumpy ride awaits!
Swing traders and day traders will make money – the traders that are not nimble will be crushed, in our opinion!
For the past few months, we have been saying that we are entering a global depression, not so much a recession!
Dan – at iAllegedly – on his YouTube channel - is sharing that the “D” word may be more likely - than a mere recession!
More analysts and bankers are now forecasting the coming of a depression – NOT a recession!
What do YOU think?
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The “Markets” – Disconnected from the Reality of “Main Street”?
We agree with other analysts, that the equity markets are completely disconnected from the reality of the collapsing economies of many countries around the planet!
When we have a bullish week as we experience – intermittently – during this epic bear market - it demonstrates - that Wall Street is oblivious to the pain being felt by Main Street! Indeed – this disconnect between Wall Street and Main Street is growing – a LOT!
We continue to think – that when a rally occurs – that it is nothing more than just another sucker’s bull rally in the ongoing bear market!
My Final Takeaway:
These sucker rallies can last for weeks at a time- during a Bear Market!
When the rug pull comes – as it inevitably WILL - the result will be a dramatic decline in the market indexes – in our opinion of course!
More and more analysts are forecasting a catastrophic commercial real estate crash! All we can say is “you have been warnded”!
We do not think we have seen the bottom.
Keep in mind, Volatility is still very much with us!
Indeed, The Bear Market is still very much still with us!
We always like to see at least a 3, or greater - week period - in which the market is in a bull trend before we can determine a potential bottom for the market!
Be careful in trading for the next one to three weeks, – AND MORE!
It’s a jungle out there!
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More details – and –
Our Full Disclosure:
This analysis is not investment advice.
We are not investment advisors!
Any financial information is for educational purposes only, not investment advice!
The global hyperinflation, the global supply chain dislocations, and of course… global drought, plus the “wars,” (take your pick: …Ukraine, Russia, China),…all of these negative factors are certainly not helpful for the bulls’ case!
Please note, Concerning our “VIX, SPY correlation-variance ” metric,
IF the VIX is trending DOWN. And the SPY is trending UP, for the most recent week of trading…then and only then will our VIX, SPY correlation-variance algo indicate a potential Risk-on, (Bullish) trend,… for the upcoming week,…
This indication of a potential Bullish trend, however, only happens,…currently,…on a very infrequent basis!...
As Doug Casey said in a recent interview, we are in a chaotic period in global markets!…
One analyst shared that bear markets may have 7 bull runs during the course of a bear market.
We may yet have a long way to go before we reach the bottom of this market!
Patrick OConnell
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